'No more bad old days' - Chrysler's new car czar

Published Aug 19, 2005

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Detroit, Michigan - Chrysler's incoming boss has vowed that, under his tough leadership, one of the most famous names in automaking will never return to "the bad old days" that saw it nearly collapse in the 1980's.

Tom LaSorda, currently chief operating officer, will take over as chief executive of Chrysler Group on January 1 as part of a high-level reshuffle at its German-based parent, DaimlerChrysler AG.

The changes were sparked by last month's shock announcement of the departure of DaimlerChrysler's embattled chief, Juergen Schrempp, who is being replaced by current Chrysler Group CEO Dieter Zetsche.

LaSorda and Zetsche will work alongside each other during the handover but the 51-year-old native of Ontario, Canada already has clear ideas of where he wants to take the company.

In his first extensive briefing with reporters since being named to the job, LaSorda said he would keep the pressure on Chrysler's workforce once a brutal restructuring process that began in 2001 is complete.

"We went through a lot of pain as a whole company. So, now we've rebounded and the health of the company is in much, much better shape," he said.

"We don't want to go back to the old days where we forgot the bad habits and start spending money and let costs get out of control. My DNA is very simple: 'I will not let this happen'."

Chrysler has already shed 40 000 jobs as part of its restructuring, driven by the often traumatic integration of its business with Daimler, but LaSorda wouldn't rule out more cuts in white-collar jobs.

And there would be "no massive hiring" in the near future.

Chrysler will also refrain from adding capacity for now, instead relying on improving the efficiency of its plants to boost productivity.

"I don't think we're ever going to be done on the cost side," LaSorda said. "We're not going to let up."

But, unlike General Motors and Ford, LaSorda said Chrysler did not plan to reopen its existing national contract with the United Auto Workers' Union to gain concessions on reducing soaring health care benefits.

On the other hand, he expects the powerful union to extend any concessions it offers to GM or Ford to Chrysler as well.

"(The union) cannot put one company at a disadvantage against the other two," LaSorda said.

After its painful revamp, Chrysler said is was now well-positioned to attack the lead enjoyed by GM and Ford and hoped to stay ahead of the fast-growing North American sales of Japanese giant Toyota.

Chrysler will launch a huge new-product onslaught in 2006 with the introduction of at least 10 models, among them several crossover vehicles that combine the ride and handling of a car with the chunky shape of a sport utility vehicle.

LaSorda said Chrysler would begin to sell hybrid vehicles - a segment pioneered by Toyota - in 2007 or 2008 with the introduction of a petrol/electric Dodge Durango SUV.

- LaSorda joined Chrysler in 2000 after 23 years as a manufacturing specialist at GM. He has received criticism in the US media for his lack of product development experience.

He said, however, that the gap in his CV should not hinder Chrysler's track record of class-leading designs.

"The days of the single car czar are over," he said.

Chrysler, which brought out such iconic designs as the Dodge Charger and Viper, has a star new designer on board - Ralph Gilles. His muscular new sedan, the 300, is already taking the US market by storm. - Sapa-AFP

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